As business leaders look for the best places to locate operations, raise capital, and source talent and ideas, prudence demands that they invest wisely throughout the world. To be successful with their geographic strategy, however, they must build a portfolio that reflects a sophisticated understanding of five underlying fundamentals. Successful investors recognize the wisdom of holding a diversified portfolio. The approach isn’t failsafe—the recent downturn destroyed value across the board—but it’s usually a sensible way to earn stable returns while limiting risk. For similar reasons, companies seeking to compete in a multi-polar world should develop and execute a diversified geographic.
